Kuala Lumpur and Paris, June 11, 2007 – Alcatel-Lucent (Euronext Paris and NYSE: ALU) today announced that it has been awarded a 10 million Euro contract to supply a 10 gigabit next generation IP/Ethernet network to Telekom Malaysia Berhad (TM), Malaysia’s leading communications service provider. The network is being delivered through AirStar (M) Sdn Bhd, a local solutions provider in telecommunications and ICT.

Alcatel-Lucent’s solution will enable TM to offer highly reliable services such as Virtual Leased Lines and Virtual Private LAN Services to its business customers. This next generation network will also form the platform for future services, including triple play, allowing TM to offer the next wave of advanced services with minimal further investment.

Built on a single unified IP infrastructure, Alcatel-Lucent’s IP-based solution is designed to support multiple type of services with superior scale, hierarchical quality of service and availability, critical for guaranteeing stringent Service Level Agreements on business-critical data.

“Alcatel-Lucent brings its worldwide experience and expertise in major IP network and service transformation projects in this partnership with Airstar and TM”, said Pierre Cheyron, Country Senior Officer and Managing Director of Alcatel-Lucent Malaysia. “Together, we are building the largest carrier class, MPLS-based IP/Ethernet network in Malaysia, which enables TM to adopt advanced technological solutions to meet broadening market demand and challenging targets.”

TM’s Malaysia Business Chief Executive Officer, Zamzamzairani Mohd Isa said, “IP/Ethernet technology is definitely where the future of networks lie. Our deployment in key business centres nationwide is to ensure we are able to provide our corporate customers with the most cost-effective and flexible network solution to meet their growing needs. As the leading telecommunications provider of the nation, we need to be always forward looking in all our investments to ensure that we stay competitive and relevant to our customers.”

Alcatel-Lucent is deploying its industry-leading IP/MPLS portfolio, namely the Alcatel-Lucent 7750 Service Router, Alcatel-Lucent 7450 Ethernet Service Switch, Alcatel-Lucent 7250 Service Access Switch and the Alcatel-Lucent 5620 Service Aware Manager.

Over 160 service providers in more than 60 countries around the world have selected the Alcatel-Lucent IP portfolio as key elements for their IP transformation, including massive, multi-year projects at AT&T, BT and Telstra. In the past months, Alcatel-Lucent has announced new service provider IP transformation deployments at Cable & Wireless, China Mobile, CTM-Macau, Hawaiian Telecom, Indosat, SaskTel, Telefónica Latin America, Telecom Malagasy and Vodafone.

About TM

Telekom Malaysia Berhad (TM), a leading regional information and communications group, offers a comprehensive range of communication services and solutions in fixed-line, mobile, data and broadband. As one of the largest listed companies on Bursa Malaysia with an operating revenue of more than RM16 billion, TM is driven to deliver value to its stakeholders in a highly competitive environment.

The Group places emphasis on continuing customer service quality enhancements and innovations. Currently, with investments and operations in 13 countries around Asia and globally, TM is focused on sustainable growth in both the local and international markets.

On the Corporate Social Responsibility (CSR) front, the Group has always been a major corporate contributor towards responsible activities in the belief that these practices are a fundamental tenet of good corporate governance. The Group promotes 3 major platforms i.e. education, sports development and community/nation-building. Under education, TM has spent some RM800 million to develop Multimedia University with more than 20,000 students. TM has also provided scholarships to over 10,000 graduates pursuing academic programmes locally and overseas. On the sports front, TM is actively contributing towards the upliftment of football at all levels while under the community/nation-building platform, the Group contributes towards causes that bring value to the community and nation at large.

About Airstar (M) Sdn Bhd

Airstar (M) Sdn. Bhd. (AirStar) is both a Bumiputra and a certified Multimedia Super Corridor (MSC) status company. Having the MSC status, the Company had been participating actively in the development of the MSC projects, and is also actively pursuing the telecommunication industry. It is among the first group of Malaysian companies that obtained the MSC R&D Grant Scheme (MGS) approved by the Ministry of Science, Technology and Environment in 2002. The Company focuses on R&D effort on wireless microwave Point-to-Point telecommunications system, catering to challenges faced in tropical climate area.

AirStar was incorporated in 1997, and is a registered contractor with the Ministry of Finance, Ministry of Defence, government linked companies such as Telekom Malaysia Berhad and Tenaga Nasional Berhad, and others including PLUS and Putrajaya Holdings. The company is embarking on strategic alliances and collaboration with multinational companies in providing a cost-effective solution to its customers.

About Alcatel-Lucent

Alcatel-Lucent (Euronext Paris and NYSE: ALU) provides solutions that enable service providers, enterprises and governments worldwide, to deliver voice, data and video communication services to end-users. As a leader in fixed, mobile and converged broadband networking, IP technologies, applications, and services, Alcatel-Lucent offers the end-to-end solutions that enable compelling communications services for people at home, at work and on the move. With operations in more than 130 countries, Alcatel-Lucent is a local partner with global reach. The company has the most experienced global services team in the industry, and one of the largest research, technology and innovation organizations in the telecommunications industry. Alcatel-Lucent achieved adjusted proforma revenues of Euro 18.3 billion in 2006 and is incorporated in France, with executive offices located in Paris. [All figures exclude impact of activities transferred to Thales]. For more information, visit Alcatel-Lucent on the Internet: http://www.alcatel-lucent.com